March 27, 2017 (New York) International law firm Proskauer released the results from its Private Credit Group’s inaugural market survey for 2017 as part of the ongoing effort to help clients understand the latest trends in the private credit markets.
Top lending institutions responded to the benchmarking survey with their predictions for the next 12 months. The results, in conjunction with market data Proskauer has collected from over 180 transactions in the last 12 months, provide a keen insight into market conditions and forecasts for the remainder of the year.
The survey provides a look at the respondents’ expectations and strategies for the year ahead, including:
- A rise in interest rates, lower pricing and credit quality remaining the same
- Competition will drive prices lower and leverage higher
- Most respondents indicate that the maximum leverage that they will underwrite is 6.00x or greater
- 87% of respondents remain interested in investing in the healthcare industry, despite the uncertainty in the healthcare sector
- 79% plan to fundraise in the next 12 months
Steve Boyko, co-head of The Private Credit Group explains, “We wanted to conduct a survey that could be used to supplement the trends we observed in our proprietary data. As a result of the high response rate from senior investment professionals in the industry, we believe that our survey produces meaningful insights into current market trends.”
Proskauer commissioned market-leading researcher Acritas to conduct the survey. Please click for the full report.
(Updated as of April 21, 2017)